A recent Third Circuit Court of Appeals case, Kairys v. Southern Pines Trucking, Inc., reminds us of the importance of not interfering with an employee’s right to benefits, in this case health benefits. In this matter, a challenge was brought by Kairys under ERISA Section 510, interference with protected rights. ERISA Section 510 prohibits an employer from discharging or discriminating against an employee in order to keep them from obtaining employee benefits. The district court found in favor of Kairys on ERISA claims and judgment was entered in his favor along with an award of attorneys’ fees and costs.

Mr. Kairys was employed by Southern Pines Trucking, Inc. when he was diagnosed with degenerative arthritis in both hips. He underwent hip replacement surgery on one hip in November 2017 and was subsequently terminated from employment. He successfully argued that he was terminated based on past and potential future medical expenses. See our previous Benefit Beat article here. The Third Circuit Court of Appeals affirmed the decision of the U.S. District Court for the Western District of Pennsylvania.

The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.